New Launch VS Resale

So Which is BETTER?

When it comes to buying a property in Singapore, the debate between resale and new launch condos is something every homebuyer faces. Both options have their appeal, but which one makes more sense? Let’s break it down in a more approachable way by comparing their pros and cons, using real examples.

Resale Condos – What’s the Appeal?

Resale condos have a few clear advantages, especially for people who want to see exactly what they’re buying. For example, with a place like The Sail at Marina Bay, you can actually walk through the units and explore the facilities. You’re not just relying on glossy brochures or CGI renderings. You get a real sense of space, sunlight, and the vibe of the community.

Key advantages of resale condos:

1. Immediate availability: No waiting for a project to be completed—what you see is what you get. Perfect for those who don’t want to wait for a new development’s TOP (Temporary Occupation Permit).

2. Developed infrastructure: You get a good look at how well the area has developed. The nearest MRT, nearby schools, and even how the traffic flows around the condo are already in place.

3. Bigger unit sizes: Older condos tend to offer larger units compared to new launches. This is especially true for places like Cavenagh Gardens or Mandarin Gardens, which have significantly more spacious layouts than newer developments.

Downsides to consider:

1. Age of the property: Older condos may have dated designs or facilities that need upgrading. Pools or gyms could feel less modern, and you might need to factor in renovation costs.

2. Lower rental yield: Due to the age and wear, resale units may fetch slightly lower rents than newer, more modern condos.

So now moving on to new launches...

New Launch Condos – Why They’re Tempting

On the flip side, new launches tend to be exciting, packed with all the latest facilities, and promise futuristic living. Condos like Normanton Park or The Botany at Dairy Farm come equipped with smart home features, contemporary designs, and eco-friendly facilities.

Benefits of new launch condos:

1. Potential for appreciation: When buying during a launch, you typically get in at the lowest price, with the potential for significant capital gains once the project is completed.

2. Modern amenities: New launches offer state-of-the-art amenities, like sky terraces, infinity pools, and high-tech security systems. It’s hard to beat that wow factor!

3. Flexible payment schemes: You can often take advantage of schemes like progressive payment plans, which allow you to pay over time as the development gets built.

The flip side:

1. Long waiting time: If you need to move in soon, waiting a few years for the completion of a new launch might not work for you.

2. Unseen variables: While renderings look amazing, there’s a level of uncertainty. Once completed, the view might be different, or the materials used might not match expectations.

3. Smaller units: Many newer developments have smaller units compared to resale condos. This trend towards compact living could feel restrictive.

Let’s Look at the Numbers

Take for example Sky Habitat, a resale condo in Bishan. It’s close to Bishan MRT, which is a huge plus, and with no waiting time, you can move in almost immediately. But if you compare that with a new launch like Lentor Modern, there’s a trade-off. Lentor Modern boasts modern designs, a mix of commercial and residential spaces, and proximity to the upcoming Lentor MRT. However, you’ll have to wait until it’s fully constructed.

Price appreciation can also vary. While resale units might offer more stability and immediate rental income, new launches could see steeper price increases over time. But this depends on factors like location, market sentiment, and the developer’s track record.

What’s Best for You?

In essence, it boils down to your priorities. If you value spacious living, immediate possession, and certainty, then a resale unit could be perfect. However, if you’re more focused on potential capital gains, modern amenities, and are willing to wait, new launches might be more your speed.

For investment purposes, resale units may offer more consistent returns in terms of rental yield due to their established locations. But new launches can offer greater long-term capital appreciation, especially in up-and-coming areas like Lentor or Dairy Farm.

Ultimately, both options have their merits, and the choice depends on your timeline, risk tolerance, and whether you prefer something established or shiny and new. Each has its place in Singapore’s dynamic real estate landscape!

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